TAX:THE RESULTS of Revenue audits from recent years indicate the underlying level of non-compliance is approximately 30 per cent, according to Comptroller and Auditor General John Buckley.
He suggested the Revenue should use the data it has collected from its audits to estimate the gap in tax collection due to non-compliance.
It should also identify the sectors where non-compliance has a material monetary effect and isolate the trends in taxpayer behaviour that lead to non-compliance.
His report shows that tax repayments as a percentage of total tax yield have been growing over the past number of years.
While repayments were 15 per cent of yield in 2005, they were 20 per cent last year.
The Revenue accounting officer said an increase in repayments in 2009 could be due to companies offsetting losses incurred against profits from previous periods.
The comptroller found instances where repayments were made in circumstances where the taxpayer appeared to owe tax.
The report looked at the issue of businesses seeking to offset losses against taxable profits in the context of the recent severe downturn. It looked at the extent to which Revenue has identified the level of losses being carried forward and the likely effect on future collection.
Trading losses being carried forward increased by €6 billion to €12 billion between 2007 and 2008. Losses being carried forward from rental losses, capital asset disposal losses and unused capital allowances for companies recording a loss, may exceed €2 billion.
